The U.S. court overturned the decision to dismiss the claim against Coachella’s reservation in its contracts with artists to limit the radius of the reservation – prohibiting music groups from performing at other festivals and solo concerts within a certain period.
This clause in the contract does not allow artists booked by Coachella to perform at other North American festivals from December 15 to May 1.
The Court of Appeals for the Ninth Circuit of the United States overturned a federal judge’s decision to dismiss a lawsuit filed against the organizers of Coachella for their alleged violation of antitrust laws through a restrictive radius clause that it places in its contracts with artists.
Originally filed in April 2018 by Soul’d Out Productions, Oregon, against the promoters of Coachella Goldenvoice claimed that the radius clause of Coachella constituted “violent interference and illegal competition.
The Soul’d Out lawsuit claimed that artists such as SZA and Danielle Caesar were forced to withdraw from another festival because of the radius specified in their Coachella contract, which states that artists who are booked to play at Coachella cannot perform at any other North American festival from December 15 to May 1, 2018.
The Soul’d Out suit was dismissed by U.S. District Court Judge Michael Mosman in March 2019. Mosman ruled that Goldenvoice did not damage Soul’d Out as a result of a radius clause in the artists’ contract and dismissed the case.
Pitchfork reports that a three-judge panel of appeals overturned Mosman’s sentence on May 12, 2020, concluding that the judge had made an error in his decision to dismiss Soul’d Out.
The panel found that “the injured party may file claims based on the alleged invalidity of the contract, even though it is not a party to the contract”.
This means that Soul’d Out may re-file its claim with the District Court within the next 14 days.
Coachella 2020 was postponed from April to 9-11 and 16-18 October due to the outbreak of coronavirus Covid-19